The purchase application index has been highlighted as a particularly important data series as it very broadly captures the demand side of residential real estate for both new and existing home purchases.

The latest data is showing that the average rate for a 30 year fixed rate mortgage (from FHA and conforming GSE data) decreased 6 basis points to 4.15% since last week while the purchase application volume decreased 0.4% and the refinance application volume increased 3% over the same period.

The following chart shows the average interest rate for 30 year and 15 year fixed rate mortgages since 2006 as well as the purchase, refinance and composite loan volumes (click for larger dynamic full-screen version).

Nominal "discretionary" retail sales including home furnishings, home garden and building materials, consumer electronics and department store sales declined slightly, falling 0.1% from June but rising 1.68% above the level seen in July 2013 while, adjusting for inflation, “real” discretionary retail sales declined 0.23% on the month and falling 0.34% since July 2013.

The purchase application index has been highlighted as a particularly important data series as it very broadly captures the demand side of residential real estate for both new and existing home purchases.

The latest data is showing that the average rate for a 30 year fixed rate mortgage (from FHA and conforming GSE data) decreased 1 basis points to 4.21% since last week while the purchase application volume decreased 1% and the refinance application volume decreased 4% over the same period.

The following chart shows the average interest rate for 30 year and 15 year fixed rate mortgages since 2006 as well as the purchase, refinance and composite loan volumes (click for larger dynamic full-screen version).

On a month-to-month basis, total residential spending declined -0.3% from May climbing 7.4% above the level seen in June 2013 and remaining well below the peak level seen in 2006.

Single family construction spending declined 1.40% from May rising 8.5% since June 2013 remaining well below it's peak level reached in 2006.

Non-residential construction spending declined 1.6% from May but rose 11.2% above the level seen in June 2013 and remaining a well below the peak level reached in October 2008.

The following charts (click for larger dynamic versions) show private residential construction spending, private residential single family construction spending and private non-residential construction spending broken out and plotted since 1993 along with the year-over-year, month-to-month and peak percent change to each since 1994 and 2000 – 2005.

Net private sector jobs increased 0.17% since last month climbing 2.16% above the level seen a year ago and climbing 1.22% above the peak level of employment seen in December 2007 prior to the Great Recession.

Today's employment situation report showed that conditions for the long term unemployed were mixed in July while still remaining distressed by historic standards.

Workers unemployed 27 weeks or more increased to 3.155 million or 32.9% of all unemployed workers while the median term of unemployment increased to 13.3 weeks and the average stay on unemployment went declined to 32.4 weeks.

Thursday's Employment Situation report showed that in July “total unemployment” including all marginally attached workers increased to 12.2% while the traditionally reported unemployment rate also worsened rising to 6.2%.

The traditional unemployment rate is calculated from the monthly household survey results using a fairly explicit definition of “unemployed” (essentially unemployed and currently looking for full time employment) leaving many workers to be considered effectively “on the margin” either employed in part time work when full time is preferred or simply unemployed and no longer looking for work.

The Bureau of Labor Statistics considers “marginally attached” workers (including discouraged workers) and persons who have settled for part time employment to be “underutilized” labor.

The broadest view of unemployment would include both traditionally unemployed workers and all other underutilized workers.

To calculate the “total” rate of unemployment we would simply use this larger group rather than the smaller and more restrictive “unemployed” group used in the traditional unemployment rate calculation.